I am 50% bonds and 50% stocks in my retirement funds. I’m 38. This is probably considered way too conservative but it’s helped during years like this.
I sold most of minimal retirement assets 10 years ago and didn’t buy back in; and also bought a condo in 2006 at the worst time. So I’ve spent a lot of the last recovery just replenishing my savings.
The mistake I made earlier was assuming that the government / fed would do the “right thing” and let the economy heal. But in reality this is the first generation of people to retire with stock market wealth as their retirement vehicle. (Think the Ira was created in 1982?) the government can’t afford to have a generation of people lose 50% of their wealth right before retirement hence why they blew an even bigger bubble. So while my gut says sell everything since it’s a wildly fake economy, my head says the rich assholes who run the country know their heads would be on pitchforks if they don’t reinflate.
So I guess I’ll stay put at 50/50. Historically a 10% market decline after almost 10 years of big returns is a small price? Sure it could dive another 20% more. But at least I’m slightly hedged with bonds.
